Stocks drop the most since May on worries about China and Fed

Stocks on Wall Street closed sharply lower Monday, mirroring losses overseas and handing the S&P 500 index its biggest drop in four months.

Worries about heavily indebted Chinese real estate developers — and the damage that they could do to investors worldwide if they default — rippled across markets. Investors are also concerned that the U.S. Federal Reserve could signal this week that it’s planning to pull back some of the support measures that it has been giving markets and the economy.

The S&P 500 fell 75.26 points (1.7%) to 4,357.73, it’s biggest drop since May. The Dow Jones Industrial Average fell 614.41 (1.8%) to 33,970.47. The Nasdaq fell 330.06 (2.2%) to 14,713.90. The Russell 2000 index of smaller companies fell 54.67 (2.4%) to 2,182.20